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Givaudan Announces 2010 Financials

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Givaudan announced its full year 2010 financial results, with sales totaled CHF 4.2 billion, an increase of 8.9% in local currencies and 7.1% in Swiss francs compared to the previous year. Sales of the fragrance division were CHF 1.99 billion, an increase of 10.5% in local currencies and 9.0% in Swiss francs, and sales of the flavor division were CHF 2.25 billion, an increase of 7.5% in local currencies and 5.4% in Swiss francs compared to the previous year.

“I am proud that we have successfully achieved all our integration targets and delivered excellent 2010 results," said Gilles Andrier, CEO, Givaudan. "As the clear market leader, we now enter with confidence into the next era of profitable growth. It is our continuous aspiration to be the essential partner to our customers in developing sustainable fragrance and flavor creations.”

The fragrance division recorded sales of CHF 1.99 billion, an increase of 10.5% in local currencies and 9.0% in Swiss francs. After a double-digit performance in the first half year, sales continued to show a strong growth in the second half on top of stronger comparables. Total sales for fragrance compounds—fine fragrances and consumer products combined—increased 10.5% in local currencies and 9.0% in Swiss francs to CHF 1.7 billion. Fragrance ingredients sales increased by 10.7% in local currencies thanks to an overall high level of demand, particularly for specialties. All three business units performed very well in 2010. Fine fragrances, which was particularly affected by the reduction of inventories at retail level last year, rebounded strongly with an annual sales growth of 18.3%. The less-cyclical consumer products business delivered an increase in sales of 8.3%. A certain element of restocking has been seen in both fine fragrances and fragrance ingredients sales.

Sales in fine fragrances had a continued strong growth momentum throughout 2010, delivering 18.3% growth compared to 2009. Customers increased their inventories at the beginning of the year and returned to more normalized order patterns towards the end of the year. This performance was strongly supported by an inflow of new wins, in all key segments including prestige, mass, specialty retail and direct sell.

On a regional basis Europe and North America delivered strong double-digit gains. In Latin America, the business delivered solid volume gains building on the exceptionally strong growth of 2009. The pipeline of briefs and new wins continuously improved throughout the year. Fragrances created by Givaudan also won a significant number of awards for its clients’ products in 2010.

The consumer products business grew by 8.3% in local currencies, driven by sales increases across all customer groups. Developing as well as mature markets contributed to this achievement. Asia-Pacific reported strong double-digit sales growth, spread across all customer groups and all products segments, especially in India, Thailand and China. Latin America posted significant growth driven by sales in the fabric care segment, led by Mexico and Venezuela. Local and regional customer sales showed double-digit growth followed by international customers. Europe, Africa and the Middle East reported a sales increase across developing and mature markets, driven by international customers. Local and regional customer sales reported strong growth in the developing markets of the region. Sales in North America increased, supported by the good performance in the air care category and solid sales volumes with international customers.

On a worldwide basis, all product segments posted a sales increase versus prior year. Fabric care sales showed the strongest performance followed by a significant growth in household. Within the household segment, the air care category delivered a strong double-digit increase, especially in North America and Asia Pacific. Sales in the personal care segment were also significantly above last year across all regions.